Corruption in Nigeria: An Impediment to Achieving the Millennium Development Goals

Abstract

This study explores the channels through which corruption acts as an impediment to achieving the Millennium Development Goals (MDGs) in Nigeria. The Structural Vector Auto Regression (SVAR) estimation technique is used to test this relationship. The variables used include Gross Domestic Product (GDP) growth rate, initial GDP (1970), Secondary School Enrollment rate, life expectancy, government expenditure, investment and corruption perception index and inflation and oil exports. The scope covers the period 1970 to 2010.   It was discovered that corruption impacted negatively on the achievement of the MDGs in Nigeria. The impulse response results indicate that corruption accounts for negative shocks in the variables, while the Forecast Variance Decomposition show that corruption accounts for a substantial portion of the variance decomposition of the variables under study. Hence, there is need to tackle corruption seriously if the country must achieve its  aim in 2015.

Keywords: Corruption, MDGs, Investment, Life Expectancy, Corruption Perception Index